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Legal news that affect small businesses and franchises, or legal advice for franchise owners

Which Legal Structure Should I Use for My New Franchise?

Often the first step in starting your franchise is creating the legal entity within which your business will operate. In fact, most franchisors require franchisees to incorporate before signing a franchise agreement. Unfortunately, establishing a legal entity for your franchise can be challenging if you are a new business owner just getting started.

DOL Final Rule for FLSA White Collar Exemption

After significant delay, the U.S. Department of Labor (DOL”) announced its final rule updating the regulations applicable to white collar exemptions, which will go into effect December 1, 2016. The DOL estimates that, absent employer action, the change will entitle more than 4 million white collar workers currently classified as exempt to overtime eligibility.

White House Targets Non-Compete Agreements

Earlier this month, the White House released a report highly critical of the use of non-compete agreements by American employers, and listed what it considered the seven (7) problem areas of non-compete agreements:  

FTC Makes Quadrennial Update to Monetary Thresholds for Franchise Rule Exemptions

The Federal Trade Commission is adjusting three monetary exemption thresholds for inflation in its Franchise Rule.

Zarco: NLRB Ruling Is Good for Franchisees

Robert Zarco
Franchisee attorney Robert Zarco of Zarco Einhorn Salkowski Brito, P.A.

LAS VEGAS—Franchise owners have surely heard all the talk about the end of franchising as we know it. The National Labor Relations Board's controversial joint-employer decision has triggered a backlash in the franchising world, with the labor board ruling that a big recycling company is responsible for the employees of a staffing firm it hired.

Jury Slaps Domino’s in Death Suit, Cites Its 'Control' of Franchise

Domino's, photo by d sniegowski
Domino's sign snapped on top of pizza deliverer's car (photo/sniegowski)

ORLANDO – A jury last week awarded $10.1 million in a wrongful-death lawsuit, holding Domino's Pizza liable in a car crash that was purportedly caused by the franchisee's pizza delivery driver.

DLA Piper’s Top 10 Franchise Cases of 2015, Part 3

In Part 3 of DLA Piper's Top 10 Franchise Cases of 2015, partner John F. Verhey presented the topic for the eighth legal case with this question: What's the most effective way to enforce remodeling requirements against your franchisees?

Customer Throws Alligator through Drive-Thru Window

AlligatorIf you think you've seen it all when it comes to drive-thru conduct, you haven't yet. Last week a video was released of an October assault of a Florida Wendy's by an airborne alligator.

Mississippi 'Freedom of Conscience' Act Signed into Law

Mississippi governor Phil Bryant signed the  “Protecting Freedom of Conscience from Government Discrimination Act” on Tuesday. Opponents of the measure, which is set to go into effect in July, say that it will allow businesses, such as restaurants, to discriminate against lesbian, gay, bisexual or transgender patrons.

Chicken Little and the NLRB: Franchisor Joint-Employers Are Falling Everywhere

Like the plummeting acorn that caused Chicken Little to conclude that the sky is falling, the recent NLRB Browning-Ferris decision (“NLRB decision”) has triggered franchisors, and some of their franchisees, to publicly and loudly proclaim that “franchising is doomed.” This forewarning is at best a great miscalculation, and at worst an intentional exaggeration.